Contract Templates for 2003 Word by bvu64416


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									CLIP Visual and Snow Plowing Contracts.
Snow removal is a unique business. Not only is it entirely un-predictable as to when the “crisis”
will happen but it is equally unpredictable as to whether the season will “feast” or “famine”. Some
seasons have heavy snowfall that benefits the “Per Time” contracts but kills the contractor on his
“monthly” contracts. Equally, if there is a below-normal snowfall, it will benefit the contractor on
his “monthly” contracts but cause little or no income on his “Per Time” contracts.

Some contractors try to avoid the “feast or famine” by having a mix of contracts but why can’t a
contract be created that will level this income out no matter what happens? This is the reason
that CLIP has created this module.

There are some creative ways of handling these problems, making sure that you get paid for
owning, maintaining and keeping the equipment ready, even if there is no snow and to make sure
that you get paid if the snowfall is above normal.

Using these contract ideas, you can structure a contract that benefits both yourself and the
customer, no matter what the weather brings.

In structuring these contracts there can be many variables, both how many times it snows, how
much it snows each time and what is included and excluded in the pricing. It is CLIP’s job to
keep track of all of these details and do all of the calculations so that you can concentrate on
getting the snow removed and making the customer happy!

CLIP has been enhanced to handle a variety of Snow Plowing contracts. Because of the unique
nature of snow removal and the way contracts are set up, handling all of the details can be very
daunting. CLIP for Snow Removal makes it easy and profitable!

The approach that we will take in this guide will be to discuss the different contracts and how we
would set up these contracts in CLIP.

There are five different contract types that are discussed in this guide:
   1. Per Inch Contract – This is a simple contract that charges by the inch plowed.
   2. Limited Seasonal Contract – This contract is based on a maximum number of
       occurrences and/or a maximum number of inches per season with an extra charge when
       this maximum is exceeded.
   3. Minimum charge or Monthly retainer fee contract. This type of contract has a built in
       minimum charge if the occurrence or expected monthly income charge is not reached.
   4. Multiple Installments per month – This gives you the ability to charge a separate
       installment for each type of service you offer. This is an added function to CLIP that can
       be used in conjunction with other contracts.
   5. Installment seasonal increase. Using the functionality from # 4 you can build in automatic
       seasonal or yearly increases for a long-term multi-year contract.

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    1. Per Inch Contract.
This contract would have a set charge for snow removal from 1-2 inches, 3-4 inches, 5-6 inches
and so on. Each price can be entered into CLIP under the “Job Change” button.

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Job Change Button

By clicking on the Job Change button you will be able to set up multiple Job Changes under this

The number of Job Changes is unlimited.

Each job change has details that can be filled in that will replace the current settings in the job at
the time of recording and posting the work.

These details are shown below:

Job Description – this is what the customer will see on their invoice/statement when this job is
recorded as done. Notice that you can change the description for each Job Change.

Job Type: this is an internal note for yourself. CLIP will place this “Type” field in the history
allowing you to access reports and lists. For example, we could see all transactions that have a
type of “SNO3” or export these to Excel for further study.

Charge per Job: This is what will be charged to the customer or placed in your daily grosses if the
job is part of contract. Notice that for each Inch Range, you can have a separate charge.

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Man-hour Rating: Since the charge can be different, you will want to adjust the budgeted man-
hour rating for each Job Change.

Default Qty: Use this field to keep track of the quantity that you are using. For example, on a 3-
inch snow, you would record a 3 in the qty, and then you can get totals for quantities spent during
a season or for a customer. You can change the quantity as you record the job as done.

You can also use this for Bags, Tons, Lbs or other things that you would want to keep track of in
this job. Remember that what you are doing here is filling out the defaults to make it easy to
change when the Snow Event actually happens.

Charge Per Hour: This is used on jobs that you would be charging by the hour for. If you had a
job called Shoveling, your charge per hour might be lower than a job using an operator and a
front loader.

You would use this if you had a generic job called Snow Clean Up and you wanted to have three
different options under it, all charged by the hour: 1.) Ice Melt, 2.)Shoveling, 3.)BobCat. You
would have three different Job Changes with different Charge Per Hours in each of them. Then
when you are recording the work you simply choose the Job Change that pertains and enter the
start and stop times for the crewmembers, and then press “Re-Calc – ‘Y’” and CLIP will figure the
charge for you.

Materials/subs Cost: Enter the amount that you will be paying for materials or for your Sub
Contractors. CLIP uses this to figure out your true Dollars/Hour for labor. Since each of these
can change depending on what job is actually being performed, you can enter a different one for
each Job Change you have.

Tax Type: Since some actions can be taxable but others might not, enter the tax type you want
for each of the Job Changes.

Items/Classes – Credit/Debit: Depending on what version of CLIP you use, you will either have
Credit and Debit account numbers (QBLink, Clinker or Peach Tree Link) or Items and Classes
(qCLIP). These are unique to each Job Change.

Note: Any of these fields that are left blank will not overwrite what is in the job at the time of
recording the work. For Example: if you leave the Job Description blank then when you change
the job using the Job Change function it will not change the job description from what is in the
main job.

Recording the work
When the Snow Event happens, you will have to load the work bank. You can do this by
activating your Zone Jobs and refreshing the work bank.

To set a job up as a Zone type job, from the Schedule tab, pick Zone for the Schedule Type:

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Change the Category and Sub-Category in the job to be used later for activating the jobs.

When the Snow Event happens, Activate your Snow Removal jobs using the Activate Jobs
function from the Daily Routines Menu.

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Choose the Snow Removal Category and activate your Snow Removal jobs.

Refresh the work bank and the Snow Removal jobs will be in the work bank, ready to print out
route sheets and/or upload to CLIPConnect or CLIPTrak.

After the work has been done, you will want to use
the Job Change option to quickly record the
charges and information.

From the Record Work Screen, click on Mark Work
as Done.

From the Mark Work Screen
enter an “R” on the job.

Now you will be at the
Record Times screen for this

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Since the Snow Event was in the 6-9” category, we can click on the Job Change button to change
it to the correct information:

Choose the 3-6” job and CLIP will enter
all of that information into the job for you.

Enter your times and save your changes,
and you are finished.

This is a quick and easy way to have
multiple charges for a customer that will
be based on an event or parameters that
happen later. All of your job costing
remains under the same job but the
charges can be different.

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    2. Limited Seasonal Contract.
This contract has a set monthly payment with a charge over Max if either the quantity or the
occurrences are exceeded.

For example: the contract could read: $150.00 per month which covers up to a maximum of 35
inches per season or up to 8 events per season. Any excess of either inches or events will be
charged at the prescribed rate.

This contract protects you against overages but guarantees a monthly income whatever the
weather might bring.

First, you must set up the monthly charges, from the customer file maintenance, click on the
Installment button to make this customer a contract customer and to enter the installments

Enter the start and stop dates for these installments and enter $150.00 into each month from
October to May. CLIP will automatically charge $150.00 per month each time you process your

This takes care of the first portion of the contract. Now set up the jobs.

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Mark the job as “Part of Contract”. This tells CLIP not to charge directly for this job unless the
Max has been exceeded.

Make sure that the check box for Times and Qty are both checked on.

Now enter an 8 in the Max Times and 32 in the Max Qty.

We will still use the Job Change button for this job since we need to keep track of how many
inches are being plowed.

From the Job Detail page, click on the Job Change button.

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Enter the detail information for each of these jobs, just as in the first contract but now, enter the
information for the Charge Over Max for each one.

Notice the (…) button to the right of the Charge Over Max. Click on that button and you will see a
place to change the description and the Items or GL Link codes.

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This description will be substituted if the charge over max is reached. That way, your customer
will not have to wonder why the charge is above the monthly payment.

Make sure that you have filled in all of the Charge Over Max fields so that when you change from
one Job Change to another, it will get recorded properly.

Note that a quick way to do this is right in the Job Change grid itself.

Now the job is set up and so is the customer. Record the work as done in the same way as you
would with the first contract and CLIP will take care of the rest. As the jobs get done, CLIP will
tally up the quantities and the number of events and if either one are exceeded, CLIP will charge
the extra amount.

Note: You can see the total quantities from the History button on the job screen. Also, note that
you can print a report of these quantities if you need to send it to a customer.

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    3. Minimum Snow Charge or Monthly Retainer Fees
This contract or part of a contract can be used in conjunction with other contracts to make sure
that you get a certain amount of income for a period of time. CLIP will automatically enter
compensating charges to make sure that you bill the customer for the minimum amount as
specified in this contract.

The Contract would read something like this:
The company will supply snow removal services to the client on an “As needed” basis per our
contract. At the end of the month (or season), if billings for these services do not equal or exceed
$1,500.00 per month (or per season) an adjustment to the bill will be made for the difference.

To set this up, you would follow the instructions for contract # 1 but then you would do the

From the Jobs button on File Maintenance, click on the “Set Minimum Charges” button.

At first the screen will be blank.

Click on the Add button (upper left) to add a minimum charge setup to this customer.
Enter the name, minimum charge, start and stop billing date, tax type and items or credit and
debit account numbers for the set up.

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Now press the Add button on the right to add jobs to this setup.

You can add as many jobs as the customer has to the setup.

What does it do?
This function collects three pieces of information:
    1. What is the minimum charge?
    2. What dates should this minimum charge be calculated for?
    3. What jobs count toward this minimum charge?

With this information, at the end of the season or any other time period (monthly, weekly, yearly)
you can tell CLIP to process this minimum charge and add a charge to make up the difference if
the customer’s account does not add up to the minimum.

The processing will happen from the Billing menu in CLIPPro or from the QuickBooks Functions
Menu in qCLIPPro:

This function allows you to process the minimum charges.

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Last time Minimum Charges Billed – shows you the last time you processed this information.
Jobs Performed during… This is where you would enter the start and stop dates for the period
        in question. If you are doing this monthly, it would be beginning of month and end of
        month or if it were seasonal, it would be beginning of season and end of season.
Post Date – This is the date that will be placed on the transaction for the customer.
Remind me to process again in… enter a number of days that you want CLIP to remind you.
Process Minimum Bill … This will process the information.

Processing the minimum charge.
CLIP will first check each customer’s record to see if they have a minimum charge set up in their
If they do, CLIP will add up all of the jobs listed in the Minimum Charge setup for that customer
that were charged during the period specified. If the total is less than the minimum charge, CLIP
will generate a debit for the remaining amount. This will be placed in the customer’s journal and
will be available for billing immediately.


The description on the debit will be the name of the Minimum charge setup with the date that you

This will enter into the Transaction portion of CLIP and you will get a final list of transactions
report for these transactions.

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    4 and 5. Multiple Installments
This function allows you to set up multiple (unlimited) installment sheets for each customer (under
that same customer name and number). This gives you the ability to charge different monthly
installments for different services. Each monthly installment page has its own 12 payments,
description and start and stop date.

This function can be used to create a contract that reads something like:
Monthly payments of $100.00 will be charged from November 1st to April 1st or the first year and
in the second year Monthly payments of $110.00 will be charged from November 1st to April 1st for
Snow Removal.

A separate contract can read:
Lawn Maintenance will be charged $300.00 per month from March 1st to November 1st for the first
year and $330.00 per month from March 1st to November 1st.

To set this up, you need to have four Installment setups for the customer.

From the File/File Maintenance choose the customer, and then click on the Installment button.

From the Installment button you will see the following:

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You can set the first installment page to zeros. Since we will be entering additional installments,
it is easier to see it on the next page.

Click on the Additional Installments button.

Click on the Add button and add a new Installment page called Snow Removal – 2004 for the
month of *M* . The *M* will be replaced with the first three letters of the month at the time the
installment is generated.

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Enter the starting date as 11/01/2003 and the ending date of 04/01/04. This will start and stop
the installments on time. (This would be to be billed out during a normal North East Snow
Removal season.)

Enter the $100.00 payment for each month from November to January.

You are finished with the first Snow Removal installment setup for this customer. Now click on
the Add button to add a new one.

The difference between the 2004 and 2005 installment setups are the starting and ending dates,
the description and the price.

Now enter another one for the 2004 Mowing season:

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And then enter another one for the 2005 mowing season.

Notice that in the month of March, the customer will receive two installments on their bill.

Since the number of installment setups is unlimited, you can add different types of installments for
different types of services that you might be providing.

Notice also that you can put any of these installments on hold by entering a “Y” in the On Hold
text box.

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That’s about it. Please email us at as
you use this product and let us know how we can improve it.

Thank you for purchasing our product.

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